India has well-established infra to attract FDI in RE, telecom
India is focusing on integrating its value chain with that of the West, particularly in these sectors, says Economic Survey
image for illustrative purpose
New Delhi: India has a well-established infrastructure to attract foreign direct investment (FDI) in sectors like greenfield projects such as renewables, digital services such as telecommunications, software and hardware, and consultancy services, the Economic Survey 2023-2024 said on Monday.
Over the medium term, India is focusing on integrating its value chain with that of the West, particularly in sectors like renewable energy and advanced technology, including AI, semiconductors, and next-generation telecommunications.
The Survey said this strategy is being pursued through agreements such as the Australia-India Free Trade Agreement and the US-India Clean Energy Initiative.
“As a result, the trading patterns within these sectors are starting to develop. For example, the tariff classifications for environmentally friendly technology, such as solar water heaters, waste recycling devices, and wind turbines, show an increase in exports to the USA from $199.2 million in FY20 to $326.9 million in FY24,” according to the Survey. Further, leading American and European companies in the renewable energy sector, such as First Solar, Vesta, and Scatec, have established their operations in India to take advantage of the growing demand for green technologies.
India ranks second in the world in telecommunication, computer, and information services exports, sixth in personal, cultural and recreational services exports, eighth in other business services exports, 10th in transport services exports, and 14th in travel services exports. Keeping in view India’s vision of becoming ‘Aatmanirbhar’, Production Linked Incentive (PLI) schemes for 14 key sectors were announced with an outlay of Rs 1.97 lakh crore to enhance India’s manufacturing capabilities and exports.
